Zacks Industry Outlook Highlights: American Capital Agency Corp., Fannie Mae, Freddie Mac, Vornado Realty Trust and Simon Property Group Inc.

For Immediate Release

Chicago, IL – January 26, 2010 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Real Estate Investment Trusts Industry, including American Capital Agency Corp. (AGNC - Analyst Report), Fannie Mae (FNM), Freddie Mac (FRE), Vornado Realty Trust (VNO - Analyst Report) and Simon Property Group Inc. (SPG - Analyst Report).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/29712/REIT+Outlook+%26amp%3B+Stock+Review+-+Jan.+%2710.

REIT Outlook & Stock Review

Many REITs are still trading at discounts to NAV (net asset value), traditionally a good "buy" signal. Over the past 7 or so years, REITs had traded near or in excess of NAV.

With dividend cuts and share price gains, the average yield for equity REITs during fourth quarter 2009 was 3.7%, compared to 3.8% for the 10-year Treasury, as most companies have been raising cash through asset sales and equity financing to pay down debt.

The credit freeze will have a positive effect on commercial real estate down the road; new office, apartment and retail construction has slowed considerably, which will benefit owners in a couple of years. Many companies that we cover have stopped all-new construction.

In this environment, we like well-capitalized companies that have adequate liquidity and manageable near-term debt maturities. Currently, we are bullish on American Capital Agency Corp. (AGNC - Analyst Report), a mortgage REIT that invests exclusively in agency securities for which the principal and interest payments are guaranteed by U.S. government agencies like Ginnie Mae, Fannie Mae (FNM) and Freddie Mac (FRE). The company declared a fourth quarter dividend of $1.40 per share. American Capital is one of only a few companies to have increased its dividend during the economic downturn.

Another stock worth mentioning is Vornado Realty Trust (VNO - Analyst Report), the largest publicly traded office REIT in the New York region, concentrating on Class A office properties. The core properties of Vornado are still performing at a high level, maintaining strong occupancies and increasing rents in most property formats. We believe this puts the company well ahead of many competitors, and warrants upside potential.

We would also like to mention Simon Property Group Inc. (SPG - Analyst Report), the largest publicly traded retail real estate company in North America, with assets in almost all retail distribution channels. The geographic and product diversity of the company insulates it from market volatility to a great extent and provides a steady source of income. Furthermore, Simon Property’s international presence gives it a more sustainable long-term growth story than its domestically focused peers.

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Read the full analyst report on AGNC

Read the full analyst report on FNM

Read the full analyst report on FRE

Read the full analyst report on VNO

Read the full analyst report on SPG